EV sales could see a 20 million unit boost this year as growth continues despite trade uncertainty

The Defense Commission of the International Federation Council said on Wednesday that the uncertainty about the commercial and industrial policy resulting from the American customs tariff will not hinder the growth in electric car sales, which must represent one in every four cars sold this year.

In its annual report on expectations to accommodate electric cars-a major element in the efforts made to reduce changing climate emissions-the International Energy Agency indicated that increasing the ability to afford costs and reduce operating costs was supporting sales.

“Our data indicates that despite the great uncertainty, electric cars remain in a strong growth path worldwide,” said the CEO of IEA Fatah Perol in a statement accompanying the report.

“This year, we expect that more than one cars will be in four cars that are sold throughout the world electricly, with growth accelerated in many emerging economies,” he added.

“By the end of this contract, more than two cars are scheduled to be increasingly affordable.”

IEA laid EVS sales, including hybrid components, by more than 17 million last year, with sales increased by more than 3.5 million cars from 2023.

With EV sales jumped in the first quarter by 35 percent worldwide, IEA expects more than 20 million this year to be sold.

China continues to drive to electric cars, as it represents nearly two -thirds of global sales last year and more than 70 percent of production around the world.

“The growth in China in a small part of the competitiveness of the electric cars of the battery with traditional cars in the country reflects,” the Islamic Defense Authority said.

It found that “in China, two -thirds of all electric cars that were sold last year were less than traditional equations, even without the incentives of purchase.”

But the purchase price gap remains large in many other markets.

IEA found that the average price of the electric car in Germany remained 20 percent higher than its traditional counterpart.

The US battery cars in the United States were 30 percent more expensive.

The report said that EV sales in China increased by 40 percent year on year in 2024, to nearly two compounds in general.

EVS sales passengers in Europe last year by about one in five, thanks to this in part to reduce government purchase subsidies in France and Germany.

The growth of EV sales in the United States last year, to 10 percent, as its total sales share increased to a little more than 10 percent.

Chinese cars at reasonable prices lead sales

Sales flourished in emerging and developing economies in Asia, Latin America and Africa last year, and rose by more than 60 percent year on year.

“This rapid growth has been strengthened through political incentives and the increasing presence of electrical cars at relatively affordable prices from the tray of” auto manufacturers, the International Energy Agency said.

She added that Chinese car manufacturers are also investing in local production in many developing countries to avoid definitions.

IEA noted that high definitions will not only affect EVS sales but also traditional cars, while slowing the economy that is generally declining on cars.

But she said that the Chinese market showed the possibility of resisting slowdown thanks to political support and competitive EV prices. IEA added that the experience of Europe during the Covid Epidemia showed that policies can support the sector as well as in the face of economic opposite winds.

IEA also found that global trade in EVS may increase, now represents nearly five total sales.

This story was originally shown on Fortune.com

2025-05-14 09:37:00